Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Just after midnight last night, after three days of deliberation on 942 amendments, the Senate unanimously adopted a trim $38.1 billion fiscal 2016 state budget plan that is generally similar to the budget passed last month by the House, at least in terms of the major local aid accounts and the bottom line.
The Senate budget would increase overall state expenditures by approximately 3 percent, as the state seeks to close a projected $1.8 billion structural budget deficit by restraining spending and eliminating up to 5,000 state jobs through an early retirement program.
Budget action now shifts to a House-Senate conference committee, as legislative leaders will need to iron out differences on a number of budget matters, including disagreements on state tax policy and the strength of reform measures for the Massachusetts Bay Transportation Authority. The conference committee process is expected to take several weeks.
Senators voted to expand the earned income tax credit for low-income workers, increase personal deductions for all taxpayers, and freeze the state income tax rate at 5.15 percent. House leaders are objecting to including this language in the state budget, based on constitutional language stating that tax measures must originate in the House. This may become an area of significant contention during the conference process.
MBTA reform will also require further compromise between the branches. The Senate approved an amendment to create a Fiscal and Management Control Board to oversee the agency, and the House budget includes a provision exempting the MBTA from the so-called Pacheco anti-outsourcing law. Legislative leaders will need to agree on a final MBTA reform package, either as part of the budget or in separate legislation.
• Link to Senate budget website
In terms of local aid, the Senate budget provides strong progress on many important municipal priorities, although the House and Senate have adopted different appropriation amounts for several local aid accounts and programs.
Key municipal and school funding issues
Unrestricted municipal aid
The Senate, House and governor all agree on a $34 million increase in Unrestricted General Government aid – a major win for cities and towns. The Senate, House and governor’s budgets all support $979.8 million for UGGA, which means local officials can count on this level of funding for fiscal 2016. This 3.6 percent increase for every city and town will be the largest increase in discretionary municipal aid in nearly a decade.
Special education
In another victory for cities and towns, the Senate voted to fully fund the Special Education Circuit Breaker program. The Senate budget plan would provide $271.6 million, an $18.2 million increase above fiscal 2015, and $9.9 million more than the House budget.
House leaders have also stated their intention to fully funding the account and appropriated $261.7 million, an increase of $8.3 million, but Senate leaders predict that full funding would require an $18.2 million increase for next year, not the $8.3 million increase voted by the House.
The governor’s budget would level-fund the program at $253.4 million. This is a vital program that every city, town and school district relies on to fund state-mandated services.
Kindergarten grants
The Senate budget would fund Kindergarten Development Grants at $1 million in fiscal 2016, which would translate into a painful $17.6 million cut for the 117 communities and school districts that depend on these funds.
The House budget would level-fund the program at $18.6 million, while the governor’s budget would have eliminated all funding. Reducing or eliminating the $18.6 million would jeopardize expanded kindergarten programs throughout the state.
Regional school transportation
During budget debate, senators voted to add another $2.5 million for regional school transportation reimbursements, on top of the $5 million increase proposed by the Senate Ways and Means Committee.
Last November, former Gov. Deval Patrick used his Section 9C emergency budget-cutting powers to trim this important program to $51.5 million. Gov. Charlie Baker’s fiscal 2016 budget proposed level-funding at $51.5 million.
The House budget would restore $5 million to bring regional transportation reimbursements up to $56.5 million, and the Senate budget is proposing $59 million.
Chapter 70
The Senate budget is proposing a $111.2 million increase in Chapter 70 education aid, with a provision providing every city, town and school district an increase of at least $25 per student.
The House also adopted minimum aid at $25 per student, which means both the House and Senate support higher minimum aid than the $20-per-student amount proposed by the governor.
The Senate’s Chapter 70 appropriation is $3 million more than the House budget and $5.9 million more than the recommendation in the governor’s budget submission. The Senate’s increase over the House proposal would be used to slightly accelerate the implementation of the target share provisions enacted in 2007, which is why several districts would see a somewhat higher Chapter 70 aid level in the Senate’s proposal.
Because most cities and towns only receive minimum aid (245 operating districts in cities, towns and regions), the MMA will advocate for the Senate’s $111.2 million increase and will work to build on this progress and continue to call for higher minimum aid funding in the future.
Charter school reimbursements
Under state law, cities and towns that host or send students to charter schools are entitled to be reimbursed for a portion of their lost Chapter 70 aid. The state fully funded the reimbursement program in fiscal 2013 and 2014, but is underfunding reimbursements by approximately $34 million in the current fiscal year.
The governor and House would level-fund charter school reimbursements in fiscal 2016 at $76.8 million, which would guarantee another major shortfall in fiscal 2016 and cause cutbacks for the majority of students who remain in the traditional school setting.
The state budget bill released by the Senate Ways and Means Committee last week proposed a $3.2 million increase, up to $80 million, and on Thursday, Senators voted to add another $4.5 million to bring the Senate’s proposal up to $84.5 million, which is $7.7 million more than in the House and governor’s budgets. The Senate’s action would increase funding by 10 percent, though the account would still be significantly underfunded.
McKinney-Vento
The Senate and House budgets would increase fiscal 2016 reimbursements for the transportation of homeless students by $1 million to $8.35 million, the same funding level proposed by the governor. While the account would remain below the full reimbursement called for under the state’s unfunded mandate law, it would be the first increase since fiscal 2013. Because the House and Senate budgets are identical on this account, it is expected that the Legislature’s final budget will provide $8.35 million.
Payments-In-Lieu-Of-Taxes (PILOT), library aid, METCO, and Shannon anti-gang grants
The Senate budget would level-fund PILOT payments at $26.77 million (the same as proposed by the House and governor) and would fund library grant programs at $18.7 million ($200,000 more than proposed by the House and governor).
The Senate would fund METCO at $19.9 million ($250,000 less than the House’s $20.15 million and $800,000 more than the governor’s $19.1 million).
During debate, senators added $2 million to Shannon anti-gang grants to bring funding up to $8 million. (The governor proposed $7 million, and the House endorsed $6 million).
Emergency medical services
During the budget debate, senators approved an amendment adding an outside section intended to prevent the “pay the patient” practice by insurance companies, which undermines the ability of cities and towns to fund and operate effective ambulance services that are at the core of emergency medical response in Massachusetts. “Pay the patient” forces communities to pursue their own residents to recoup thousands of dollars in ambulance expenses, a system that is inefficient and subject to abuse.
The Senate amendment would give ultimate rate-setting authority to the secretary of Health and Human Services, with language calling for rates not to exceed the cost of the ambulance service. The House also adopted an amendment to ban “pay the patient” practices, with language stating that municipalities would be authorized to set a fair rate for ambulance services, preventing insurance companies from shifting costs to local property taxpayers through below-cost reimbursements. The governor’s budget did not address the issue.
The MMA is advocating for final budget language that prevents “pay the patient” and ensures that cities and towns can set adequate rates to pay for emergency ambulance services.
Community Preservation Act
During fiscal 2015, 156 cities and towns collected the local Community Preservation Act surcharge and are eligible for state matching grants in fiscal 2016. The Division of Local Services estimates that the balance in the state trust fund will be sufficient to provide a first round match of only 18 percent of the surcharge levied by each city and town – the lowest state match in the program’s history.
The House voted to dedicate up to $10 million of any fiscal 2015 year-end state budget surplus to supplement the fiscal 2016 state match, but the Senate budget does not include the CPA funding provision.